Op/Ed by Denver Riggleman
I am a businessman. Everything I do in business, aside from taking care of my people and customers, comes down to Return on Investment (ROI). ROI is a way of calculating (sometimes subjectively) what revenue or “pay-off” will occur based on investment into a product or service. This projection allows business owners to secure an investment in a venture or to rationalize a previous investment that can be leveraged into other products or services.
There are many ways to calculate ROIs (so I’m going to simplify for this editorial). A good ROI is usually calculated at somewhere around 7:1 or 8:1 if we are looking at a dollar to dollar increment. Anything higher than 8:1 is spectacular. I have been fortunate to have stellar ROIs, sometimes as high as 30:1. High ROIs can be a function of time also—but for the sake of simplicity I will use “10:1” as a worthy ROI over a 10-year period. For every dollar invested, I will earn $10 on the back end. Using the 10:1 ratio as a baseline, Dominion Power had quite the fine day at the expense of customers and taxpayers across the Commonwealth—an almost unimaginable ROI.
What happened Monday in the Senate Commerce and Labor committee should bother everyone. Senator Chap Petersen’s SB 1095, a Senate bill that would restore refunds to Dominion and Appalachian Power customers (a total of $106.7 million) and suspend legislation sponsored by Frank Wagner in 2015 (SB 1349), was defeated by a wide margin (12-2).
Wagner’s SB 1349 had suspended customer refunds for 5 years based on his argument that Obama-directed EPA regulations had created “regulatory uncertainty” for Dominion Power. SB 1095 would have restarted the automatic refunds for those overpayments because, well, Obama will no longer be President. Senator Petersen understood two things…that Wagner’s prior argument was tripe and that Trump’s election would mitigate those regulatory concerns.
Let’s calculate an ROI just for the $106.7 million in “over-earned” refunds kept by Dominion—not considering their net profits on over $11.5B in revenue for 2015 (yes that’s “billion” with a ‘b’).
Dominion Power donated $433,585 to the members of the Senate Commerce and Labor Committee (those who voted for the bill) over the past 5 years (donations between 2011-2016 per VPAP). Going back 10 years, Dominion gave a total of $606,366 (donations between 2006-2016) to these Senators.
That’s a heck of a return on investment, and it’s wrong. Dominion’s $606.4K investment into the campaigns of Senate Commerce and Labor Committee members since 2006 who voted to kill the bill resulted in a tidy 176:1 ROI (roughly).
I would like to think that none of our elected officials would be influenced by these donations, but how can we tell? Dominion, although investor-owned, is a state-regulated monopoly, and its profits are guaranteed by actions of the legislature. A public-private homogenous entity leveraging the lawmakers with campaign contributions is closer to graft than capitalism. Dominion should not be allowed to lobby the legislature nor donate money. The risk of corruption is too great.
Too often, lobbyists and the donor class look at legislators as simple tools to enhance their bottom lines and portfolios. Dominion is not the only player, but they are certainly the largest.
Make no mistake, my position is not anti-business (I’m in business myself) and God knows I have no objection to profits. I know our modern society depends upon reasonably priced energy, and lots of it. But I’m violently against pay-to-play. One should not have to be a donor to get attention from the legislature, and state sponsored monopolies should not be allowed to influence, or attempt to influence, the legislature. At best it gives the appearance of cronyism, and at worst, well, you can decide for yourself.
There is a reason why public faith in our institutions is dying. The cancer of pay-to-play eats away at the foundations of honest, representative government.
When I am Governor, I will fight to bar donations from Dominion to legislators, and outlaw lobbying by state monopolies and state agencies. It’s unethical. It’s un-American. It’s got to end, and I intend to put a stop to it.
21 comments
Just a few quibbles on this op-ed. The author is correct on the revenue numbers however, that number does not take into consideration operating costs for a net income of $1.9 billion.
Net income in 2015 was $1.9B. Their effective profit margin (after costs) is 16.24%. So, Dominion has $1.9 billion on their balance sheet. The questions that need to be asked before they are tarred and feathered is whether or not there are long term investments (like new power plants, etc.) in their long term plan? Is it going to be funneled into salaries? Or is it going to sit there to make investors feel comfortable about dividends and/or stock prices.
I know this piece was to pick off Wagner supporters however, I don’t disagree with the killing of the bill at this point in time. We have a new administration in office now but they have been in one day, not one month or one year. Wouldn’t it be more prudent to see how President Trump deals with the EPA regulations before any state action? I doubt this bill was killed with extreme prejudice never to resurrected again.
As far as the contributions to legislators – it’s a double edged sword for me. While I understand Dominion has every right to contribute, I don’t particular care for the fact, as a state regulated utility, they do.
Hopefully you’ll run against the democrat with the same vim and vigor you are have running against Dominion.
The Democrats do not run Virginia. Dominon does.
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We need an Inauguration Day post.
I am satisfied with our field. I am still undecided who I will support to be our nominee. However, I will have no problem supporting whoever is victorious over Northam/Perriello.
Not a fan of any elected officials that tout their previous miltary experience as a character trait over others than stand by and allow law abiding tax paying citizens jobs to be REDISTRIBUTED to illegal non-taxable paying foreigners , then take monetary donations from their illegal employer.
If Va. Republicans do not nominate the commonsense businessman
Riggleman for Governor in November
they have no one.
For the time being I have to invest my
vote with the candidate who at least has some percentage of ROI on the Va. taxpayer investment of their political career.
How much money has Wagner taken from Home Builders Assocoiation?
Do you think these white collar Builders in Va. who are employing illegal aliens as unlicensed sub-contractors are members of Home Builder Adsociations?
Don’t support Republican job redistribution any longer.
Support my President and stop trying to undermine the obtainable goal to Make America Great Again!
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I raised all the hell I could about SB 1349 last year. You lug nuts don’t get it. You just sat on your ass.
$Beamer Bucks$ run Virginia government.
Great platform, and worthy of support, but there are less that five months until the June 13 primary. Does Denver have the organization to make it happen? Sadly, I’m not optimistic.
We are rapidly building our operation. We need help. If enough patriots band together, we can absolutely get it done. Please sign up on our website denverforgovernor.com if you want to help us get on the ballot and help us win!
Will Denver be accepting $Beamer Bucks$? Or, will he pledge right now not to accept any power company money?
He won’t take them. He’s said it publicly
Does he accept Home Builder Associations money?
I looked at his immigration plan.
I will be kind to you on this for I think that you may be sincere on this issue.
I do not compete for housing with illegal aliens in Cities across Va.
I do compete with Building Contractors who use groups of illegal aliens as unlicensed contractors , even on school projects.
Mr.Werrell how will your candidate combat illegal employment in Va?
Would your Candidate/Employer seek to make the interdepartmental notification policy of EO24 by McAuliffe law?
Going after santuary cities when we have State santuary employment.
How many Cities in Va?
How many Building Permits annually issued in Va?
Well, since most if not all of the larger well know PAC’s are oozing power company money, how is Denver going to finance his run without taking PAC money which is really power compan loot?
Heard Denver on John’s show this morning. He is the best candidate for leading Virginia away from it’s “power company run government”. Great job, very impressive.
I will commit to vote for him in a primary, as long as he doesn’t jump in the sack with the power company.
Can one make anonymous cash donations to a campaign legally.
Outstanding!!^^ Why Denver should be our next governor!
I’m finally getting used to you and I agreeing on something Connie. It’s weird, but I like it.
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